Bank of America lowered its rating on WMS Industries (NYSE: WMS) from Neutral to Underperform with a reduced price objective of $14.

Bank of America said, "WMS reported its FQ4 earnings and now plans on making material investments in F13 for its interactive business. We have been cautious on R&D spend in Gaming Tech, as returns are challenged by fierce competition. Ramping expenses raises risk of material shortfalls in F13 EPS and we think the turnaround faces additional risks until at least 2H F13 and lower our rating to U/P."